Thursday,intelligence, surveillance and reconnaissance solutions provider Applied Signal Technology, Inc.(APSG) reported an increase in profit for the fourth quarter, resulting from a 12.1% growth in revenue, as well as improved margins.
Applied Signal's net income for the fourth quarter improved to $3.6 million from $2.5 million in the year-ago period. On a per share basis, earnings increased 35% to $0.28 from $0.20 in the same quarter last year.
On average, 7 analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter. Analysts' estimates typically exclude one-time items.
The Sunnyvale, California-based company's revenue for the fourth quarter rose 12.1% to $54.3 million from $48.4 million in the comparable quarter last year. Wall street analysts had a consensus estimate of $57.88 million for the quarter.
The company said it gained revenue from contracts of $53.2 million compared to $46.9 million in the year-ago period. However, revenue from royalties declined to $1.0 million from $1.4 million in the same quarter last year.
Operating margin increased to 10.9% from 9% in the prior year quarter, primarily due to heavier mix of fixed-price contracts, improved profitability on certain development contracts, and a reduction in stock-based compensation expense.
Operating income for the quarter was $5.9 million, 36% up from $4.3 million last year. Total operating expenses was $48.3 million, compared to $44.0 million in the same quarter last year.
Applied Signal received $69.5 million new orders for the fourth quarter, 74% higher than the $39.8 million orders last year.
For the full year, the company reported net income of $14.5 million or $0.11 per share, compared to $8.0 million or $0.63 per share last year. Revenue for the year improved to $202.6 million from $186.3 million a year ago.
APSG closed Thursday's regular trading at $20.92, down $0.13 or 0.62%, on the Nasdaq. In after hours, the stock gained 0.96% or $0.20, trading at $21.12.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.